In reference to our annual report submitted to the market on March 29, 2024, Lokotech will tape-out a commercial-scale AI and Scrypt ASIC. The tape-out date is set for October of this year.

As previously mentioned, the validation process for Chiplet 2 analog transceivers proved more time-consuming than anticipated, primarily due to challenging wire bonding issues on the small MPW chiplet prototypes. Additionally, we have decided to slightly increase the technical scope of the chip to bolster its security against unauthorized access and enhance overall design robustness. Significant enhancements have also been made to the AI block to align with industry standards and improve user-friendliness. These improvements, implemented parallel to the validation of Chiplet 2, extended the project timeline somewhat.

Upcoming Milestones:

Tape-out will now take place in October 2024, marking the final design phase before mass production.

Final high-accuracy power simulations for our design are slated for August 2024 and will be communicated to the market upon completion.

Negotiations with the Value Chain Aggregator (VCR) have commenced to discuss pricing and scheduling terms with the foundry, ensuring a seamless transition into the manufacturing phase. Further updates will be provided as we reach these milestones.

Customer Information: Despite the revised timeline, customers that ordered directly from us have the option to cancel their orders with a full refund plus accrued interest. Orders not canceled will maintain their place in the production queue. Sales for Batch 1 will close the same week the power simulations are published. Other batches will open at later dates.

This announcement complies with Section 5-12 of the Norwegian Securities Trading Act, constituting inside information under the Market Abuse Regulation (MAR).

Published on behalf of Lokotech Group AS by Benjamin Miklozek, CFO, at 7:00, on June 26, 2024.